Economic growth and thinking outside the box

This column in The Economist leaves me feeling extremely uncomfortable because it speaks for all those economists (and others) who are in denial about the reasons  for the economic crisis and the need for thinking outside the conventional economic box to deal with it.

For some time The Economist has been saying the economic crisis must and can only be solved with more growth.  And the way to attain economic growth is innovation and increasing productivity.  This column claims aging workers become less productive than younger workers and the aging workforce dooms us to decreasing rather than increasing productivity.

clownIf only older workers could increase their productivity then all our problems would be solved.

Another article in the same issue talks about the economic crisis around the world.  I find it a bit of a stretch to think that all these problems are a result of an aging workforce in the rich world countries.

One has to observe that in the last few years the marginal cost of a lot of energy and mineral resources has gone up.  This means the most easily extracted of these resources have now been used.  What is left will require more energy to extract.  This has to have a negative impact on our economy.   It could even mean that future growth will be difficult if not impossible.

This is a much more serious issue than what most people can admit.  Rather than asking people to work harder and to use  Google glasses we need to look for ways to organize our economy so that our welfare does not depend upon continued economic growth.

 

If you liked this post your are invited to comment, press the like button and/or click  one of the share buttons. If you disagree you are invited to say why in a comment.  While I like the idea of sharing this platform, my personality is such that I don’t reply to many comments.

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2 Responses

  1. When I tried to press the “like” button, it just kept saying loading. I agree that digging up metals is cost prohibitive. It also hurts the environment. I didn’t know that older workers were being blamed for our economic woes. The last I heard is that people were hiring them, for less, I believe. But statistics vary from one source to another. I, at 66, thought the main drawback of being old was that the elderly were getting sick and sucking the life’s blood out of the nation’s health care budget, according to the “experts.” Why not help to keep us healthy and productive? Why not look for green energy so we can all prosper? In order to do this, I think we need to have a scientific mathematical approach as to how we place value on money instead of depending on financial terroriss in a game that is rigged. Furthermore, In 2013, we certainly don’t need to be carting around some metal and worshiping it’s arbitrary value such as many want to do, who long for the “good old days” of the gold standard. Modern day methods will protect us all including the elderly.

  2. * “loading” its * (I can’t write in these boxes without a typo. :))

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